American Implementing Cost-Cutting Moves
FORT WORTH, Texas -- AMR Corp's (AMR) American Airlines on Tuesday told its flight attendants' union that notices will be issued to 5,000 of its most junior flight attendants that they may be subject to furlough effective July 1.
The company said the action is part of the agreements signed by its unions last week.
The airline, which posted a $1.04 billion first-quarter loss last week, said that on Wednesday it will send furlough notices to 1,300 mechanics and related workers represented by the Transport Workers Union. The effective date is May 16.
The airline will send similar notices to 1,200 fleet service clerks in the next several weeks, with an effective date of June 14.
The first pilot furloughs will occur in July, with notices sent on June 1. The number of pilots immediately affected is still being determined.
American Airlines said that starting Thursday, unionized domestic employees will take pay cuts, and the carrier will begin implementing other aspects of its $1.8 billion in employee cost savings.
Also on Thursday, pay, benefit and work rule changes will occur among the airline's non-unionized staff.
American has said it will eliminate more than 7,000 jobs under the new contracts.
Job cuts are to include 2,200 pilots; 1,300 mechanics and related workers; 1, 200 fleet service clerks and 2,400 flight attendants. Changes to certain voluntary leave programs mean that the actual number could be greater than 7, 000.
Flights into and out of St. Louis won't be affected, although 40% of the flight attendant furloughs will take place there.
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American Implementing Significant Cost Reduction Components; Consensual Agreements Begin Taking Effect
FORT WORTH, Texas, Apr 29, 2003 /PRNewswire via COMTEX/ -- American Airlines today began implementing the major parts of the consensual agreements signed last week by all of its unions.
We're continuing to move forward with our plan to reduce annual operating costs by $4 billion, said Gerard Arpey, American's chief executive officer. The changes to pay, benefits and work rules brought about by the sacrifices of all employees are vitally important components of our efforts to return to financial stability.
The most difficult part of the changes necessary to keep American out of certain bankruptcy is the significant personal impact on so many of our employees, he said.
Effective May 1, all domestic American Airlines employees will take pay cuts, and the carrier will begin implementing other aspects of its $1.8 billion in employee cost savings.
As previously announced, American anticipates more than 7,000 positions to be eliminated as a direct result of the new contracts. This estimate includes 2,200 pilots; 1,300 mechanics and related workers; 1,200 fleet service clerks and 2,400 flight attendants. Changes to certain voluntary leave programs mean that the actual number of employees to leave American could be greater than 7,000.
American notified the Association of Professional Flight Attendants this morning that notices will be issued to approximately 5,000 of its most junior flight attendants across the country that they may be subject to furlough effective July 1.
Of that number, approximately 2,200 are related to the potential return to work of flight attendants who are currently on an overage leave of absence. Under the old contract, overage leaves carried full benefits, which is not the case under the amended contract. American will offer new overage leaves to flight attendants, which do not provide insurance or certain other benefits, in order to reduce the number of furloughs. The remaining overage is related to productivity improvements under the amended contract and previously announced schedule reductions.
These are difficult times for our employees, said Jane Allen, vice president-Flight Service for American. We appreciate each and every one of our flight attendants and regret the impact that these changes will have on our people.
Flights into and out of St. Louis, where approximately 40 percent of the flight attendant furloughs will take place, will not be impacted. Our summer schedule in St. Louis will remain consistent with projections, David Cush, American's vice president-St. Louis hub, said.
Furlough notices to 1,300 mechanics and related workers represented by the Transport Workers Union will also be sent on Wednesday, with an effective date of May 16. Notices to 1,200 fleet service clerks will go out during the next several weeks, with an effective date of June 14.
American, which has been meeting with the Allied Pilots Association on contract implementation, said the first pilot furloughs will occur in July, with notices sent on June 1. The number of pilots immediately affected is still being determined.
On May 1, pay, benefit and work rule changes -- just as critical and appreciated as those among unionized employees -- will occur among the airline's agents, representatives, planners, support staff and management employees as well. As recently as April 17, American reduced its management and support staff positions by a further 5 percent.
Current AMR Corp. (NYSE: AMR) press releases can be found on the Internet. The address is http://www.amrcorp.com
SOURCE American Airlines
FORT WORTH, Texas -- AMR Corp's (AMR) American Airlines on Tuesday told its flight attendants' union that notices will be issued to 5,000 of its most junior flight attendants that they may be subject to furlough effective July 1.
The company said the action is part of the agreements signed by its unions last week.
The airline, which posted a $1.04 billion first-quarter loss last week, said that on Wednesday it will send furlough notices to 1,300 mechanics and related workers represented by the Transport Workers Union. The effective date is May 16.
The airline will send similar notices to 1,200 fleet service clerks in the next several weeks, with an effective date of June 14.
The first pilot furloughs will occur in July, with notices sent on June 1. The number of pilots immediately affected is still being determined.
American Airlines said that starting Thursday, unionized domestic employees will take pay cuts, and the carrier will begin implementing other aspects of its $1.8 billion in employee cost savings.
Also on Thursday, pay, benefit and work rule changes will occur among the airline's non-unionized staff.
American has said it will eliminate more than 7,000 jobs under the new contracts.
Job cuts are to include 2,200 pilots; 1,300 mechanics and related workers; 1, 200 fleet service clerks and 2,400 flight attendants. Changes to certain voluntary leave programs mean that the actual number could be greater than 7, 000.
Flights into and out of St. Louis won't be affected, although 40% of the flight attendant furloughs will take place there.
______________
American Implementing Significant Cost Reduction Components; Consensual Agreements Begin Taking Effect
FORT WORTH, Texas, Apr 29, 2003 /PRNewswire via COMTEX/ -- American Airlines today began implementing the major parts of the consensual agreements signed last week by all of its unions.
We're continuing to move forward with our plan to reduce annual operating costs by $4 billion, said Gerard Arpey, American's chief executive officer. The changes to pay, benefits and work rules brought about by the sacrifices of all employees are vitally important components of our efforts to return to financial stability.
The most difficult part of the changes necessary to keep American out of certain bankruptcy is the significant personal impact on so many of our employees, he said.
Effective May 1, all domestic American Airlines employees will take pay cuts, and the carrier will begin implementing other aspects of its $1.8 billion in employee cost savings.
As previously announced, American anticipates more than 7,000 positions to be eliminated as a direct result of the new contracts. This estimate includes 2,200 pilots; 1,300 mechanics and related workers; 1,200 fleet service clerks and 2,400 flight attendants. Changes to certain voluntary leave programs mean that the actual number of employees to leave American could be greater than 7,000.
American notified the Association of Professional Flight Attendants this morning that notices will be issued to approximately 5,000 of its most junior flight attendants across the country that they may be subject to furlough effective July 1.
Of that number, approximately 2,200 are related to the potential return to work of flight attendants who are currently on an overage leave of absence. Under the old contract, overage leaves carried full benefits, which is not the case under the amended contract. American will offer new overage leaves to flight attendants, which do not provide insurance or certain other benefits, in order to reduce the number of furloughs. The remaining overage is related to productivity improvements under the amended contract and previously announced schedule reductions.
These are difficult times for our employees, said Jane Allen, vice president-Flight Service for American. We appreciate each and every one of our flight attendants and regret the impact that these changes will have on our people.
Flights into and out of St. Louis, where approximately 40 percent of the flight attendant furloughs will take place, will not be impacted. Our summer schedule in St. Louis will remain consistent with projections, David Cush, American's vice president-St. Louis hub, said.
Furlough notices to 1,300 mechanics and related workers represented by the Transport Workers Union will also be sent on Wednesday, with an effective date of May 16. Notices to 1,200 fleet service clerks will go out during the next several weeks, with an effective date of June 14.
American, which has been meeting with the Allied Pilots Association on contract implementation, said the first pilot furloughs will occur in July, with notices sent on June 1. The number of pilots immediately affected is still being determined.
On May 1, pay, benefit and work rule changes -- just as critical and appreciated as those among unionized employees -- will occur among the airline's agents, representatives, planners, support staff and management employees as well. As recently as April 17, American reduced its management and support staff positions by a further 5 percent.
Current AMR Corp. (NYSE: AMR) press releases can be found on the Internet. The address is http://www.amrcorp.com
SOURCE American Airlines
